While cryptocurrencies previously stood at the fringe of the payments space, in 2021, institutional interest has increased as governments and banks have invested in the space. The U.S. regulatory agencies have acted as key drivers by creating roadmaps and guidance for companies wanting to get involved with new or existing crypto projects.
Meanwhile, certain banking institutions built infrastructure to enable clients to utilize their cryptocurrencies through traditional financial practices, such as providing custodial services, enabling money transfers, and creating lending products. Globally, countries incorporate cryptocurrencies to different extents. Although many countries lag in adoption, the current trajectory of the market is favorable.
The publisher believes that payment processors and fintechs should explore ways to incorporate cryptocurrency and blockchain solutions into their current models to remain competitive. This report examines the current regulatory and financial developments in the cryptocurrency space and highlights trends and strategies companies use to harness this growth.
“[The publisher] sees the potential in this budding cryptocurrency industry and believes there are use cases that banks, processors, and card programs can take advantage of to drive greater customer satisfaction, greater transaction volume and greater assets under management,” commented the report's author Tim Sloane, VP, Payments Innovation, and Director, Emerging Technologies Advisory Service.
Highlights of this research report include:
- An overview of regulatory developments in the United States and Canada
- A broader look at worldwide players and their changing sentiment towards cryptocurrencies
- An analysis of centralized digital currencies and their implications for decentralized digital currencies
- Examinations of different blockchain infrastructures and stablecoin solutions implemented by institutions
- A review of financial products and payment solutions that current institutions have implemented to support cryptocurrencies
1. Executive Summary
3. United States Taking Steps to Foster the Cryptosphere
- BitLicense Poses Initial U.S. Regulatory Guidance
4. Global Sentiments Support Cryptocurrencies
5. Centralized Digital Currencies Aim to Compete Head to Head with Cryptocurrencies
- The Chinese Digital Yuan
- The United States Digital Dollar
6. U.S. Banks Enter Cryptosphere with Regulatory Legitimacy
- Custodial Services
- Node Capabilities
- Anchorage Bank Becomes First U.S. Digital Asset Bank
- Signature Bank and Silvergate Develop Digital Currency Solutions
- Related Research
Figures and Tables
Figure 1. Logarithmic Bitcoin Price Chart as an Adoption Curve Error! Bookmark not defined.
Figure 2. Cryptocurrency Holders by Country 2020
Figure 3.Global Cryptocurrency Sentiment by Continent and Country
Figure 4. JPM Coin Transaction Structure
Figure 5. Silvergate Exchange Network
Figure 6. Signet’s Blockchain Infrastructure
- Anchorage Bank
- Bank of Canada
- The Block
- J.P. Morgan
- People’s Bank of China
- Royal Canadian Mint
- Signature Bank
- Silvergate Bank